Ryan Clinton Presents Oral Argument to the Texas Supreme Court in High-Profile Oil & Gas Dispute
On January 9, 2018, Ryan Clinton presented oral argument to the Texas Supreme Court in the case of XOG Operating, LLC v. Chesapeake Exploration Ltd. P’ship, Cause No. 15-0935.
The case involves a term assignment in which XOG assigned its leasehold rights to Chesapeake for a particular term. After the initial term expired, the contract provided that Chesapeake had the right to retain all lands in a “proration unit,” which was defined in the contract as either 320 acres in size (for wells placed into fields not governed by special field rules) or the acreage “prescribed” by Railroad Commission field rules (for wells placed into fields governed by special field rules). Five wells were drilled into a field prescribing 320-acre proration units, and one well was drilled into a field not governed by special field rules.
At oral argument, Ryan Clinton argued on behalf of Chesapeake Exploration, arguing that each of Chesapeake’s six wells retained 320 acres—-far more than enough to retain all of the acreage transferred to Chesapeake in the term assignment. The parties now await a decision from the Texas Supreme Court.